Home
Finance Resources
Investment Planning
Banking
Finance
Stock Market
Futures & Options
Trading
Mutual Funds
Insurance
Taxation
Enquire
Home » Mutual Funds » Expert Tips om Mutual Funds » Finding Philosophy while Selecting a Mutual Fund Page

Find a Philosophy that Agrees with Your Own when Selecting a Mutual Fund


Like all things in life, there are different philosophical approaches to managing money. Personally, I am a value investor. I believe that every asset has what is known as an “intrinsic value”, that is a “true” value that is equal to all of the cash it will generate for the owner from now until doomsday discounted back to the present at an appropriate rate that takes into account the risk-free Treasury return, inflation, and an equity risk premium. Over time, I look for businesses that I believe are trading at a substantial discount to my estimate of intrinsic value. This causes me to buy very few businesses each year and, over time, has led to very good results. This doesn’t always mean owning bad companies with low price-to-earnings ratios because, theoretically, a company could be cheaper at 30 times earnings than another enterprise at 8 times earnings if you could accurately value the cash flows. In the industry, there are mutual funds that specialize in this type of value investing – Tweedy, Browne & Company, Third Avenue Value Funds, Fairholme Funds, Oakmark Funds, Muhlenkamp Funds, and more.

Other people believe in what is known as “growth” investing which means simply buying the best, fastest growing companies almost regardless of price. Still others believe in owning only blue chip companies with healthy dividend yields. It is important for you to find a mutual fund or family of mutual funds that shares the same investment philosophy you do.

Back



Keywords:

Philosophy, Turnover Ratios, Tips, Expense Ratio, Mutual Fund Prospectus, Reasons to Buy a Mutual Fund, Benefits, Disadvantages of Mutual Fund, Advantages, Disadvantages, Open ended Mutual Fund, mutual fund, mutual fund companies, Close ended Mutual Fund, Advantages of Close ended Mutual Fund, tata mutual fund, icici prudential mutual fund, investment, insurance

Domain Registration | Windows Hosting | Linux Hosting | Java Hosting | Virtual Dedicated Server | Dedicated Server | Reseller Web Hosting | Unlimited Windows reseller hosting | Unlimited Linux reseller hosting | Cheap Windows reseller hosting | Cheap Linux reseller hosting | Cheap Windows hosting | Best Windows hosting | Windows hosting Multiple Domains | Unlimited Windows hosting | Compare hosting plans | Cheap Linux hosting | Best Linux hosting | Linux hosting Multiple Domains | Unlimited Linux hosting | Cheap asp.net hosting | Best asp.net hosting | unlimited asp.net hosting | Cheap asp.net reseller hosting | Unlimited asp.net reseller hosting | Java Features | Cheap Java hosting | Best Java hosting | unlimited Java Hosting | Unlimited Linux reseller hosting | Java Hosting Multiple Domains| | Matargashti Full Song | Matargashti mp3 Download | Matargashti Video Download | Matargashti Song Tamasha | Prem Ratan Dhan Payo Songs Download | Prem Ratan Dhan Payo Songs mp3 Download | Prem Ratan Dhan Payo Songs Video Download | Pinga Song Download | Pinga Full Song mp3 Download | Pinga Song mp3 Download | Pinga Song Video Download | Latest Bollywood Updates | Bollywood Updates | Prem Ratan Dhan Paayo Songs Download|
© ProfitGuruOnline-2022. All Rights Reserved.